According to which of the following concepts even the owner of the business who provides capital treated as a creditor of the business?
Convention of disclosure..
Incorrect AnswerEntity concept.
Correct AnswerCost concept.
Incorrect AnswerMoney measurement concept.
Incorrect AnswerExplanation:
According, to this concept, the owner or the proprietor of a business is always separate and distinct from the business or enterprise. Business is treated her as a separate ‘unit’ or ‘entity’. But legally, there is no economic separation between the owners and the business entity in case of a sole proprietorship and partnership business According, to this concept, the owner or the proprietor of a business is always separate and distinct from the business or enterprise. Business is treated her as a separate ‘unit’ or ‘entity’.
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By: honey kaundal